The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (Trefis) -- There are conflicting views floating in the market from two big brokerage firms on DirecTV's (DTV) stock. While Nomura Securities is maintaining a "reduce" rating with a $32 price target, Citigroup has 'buy' rating with a $59 price target. Citigroup is positive on DirecTV as it feels that the growth in Latin America is undervalued. We agree with this sentiment.
Our price estimate for DirecTV stands at $53, implying a premium of about 10% to the market price. A big portion of this price estimate is DirecTV's Latin American business. This is something that puts it in a better position compared to rival Dish Network (DISH).
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